Ford, Nissan, Tesla all big winners in DoE advanced technology loans
by Sam Abuelsamid on Jun 23rd 2009 at 1:29PM 
Ford Focus EV Mule - Click above for high-res gallery
The U.S. Department of Energy has finally announced the first recipient of low interest loans under its Advanced Technology Vehicle Manufacturing Incentive Program. The first recipient is Ford, and analysts believe the DoE will award sums to Nissan and Tesla Motors, as well. Ford applied for up to $11 billion in loans, but instead it was awarded $5.9 billion in financing. The Dearborn-based automaker will use the money to fund its electric vehicle program that will launch a battery-powered version of the Transit Connect in 2010, and it will also likely use the capital to help pay for the $550 million renovation of its Wayne, MI sport-utility plant to build the next-generation Focus in both internal combustion and electric flavors.
For its part, Nissan wants to add production of its upcoming electric car and lithium ion batteries at its assembly complex in Smyrna, Tennessee, and it will receive $1.6 billion.
Despite receiving the smallest sum of the three automakers, Tesla is arguably the biggest winner this round, as the $465 million it may receive will allow the fledgeling EV maker to proceed with completing development and production of its Model S sedan. Recent investment in the company by Daimler was probably a big help in getting the loan approved, as companies had to demonstrate viability. And since the ATVM program favors re-tooling of older existing plants, Tesla will probably look at acquiring a closed factory from another company. Recent rumors had the company possibly getting a former McDonnell-Douglas factory in Long Beach, although there are plenty of other properties available.
The current Chapter 11 bankruptcy proceedings at General Motors and Chrysler made those companies ineligible in the current round. It's not known if any announcements will be made about loans for battery makers like A123 or EnerDel.
Gallery: ABG Quick Drive: Ford Focus EV mule
Photos Copyright ©2009 Sam Abuelsamid / Weblogs, Inc.
[Source: Automotive News, sub. req'd]
Reader Comments (Page 1 of 2)
Matt 1:38PM (6/23/2009)
Wait a minute...isn't the DoE a branch of the Government?
And the DoE gave Ford money....
Hmmmm................................
Reply
Sammy 1:43PM (6/23/2009)
Worse- they are about to give Nissan money. WTF?
sk 1:51PM (6/23/2009)
Better to LOAN the money to companies with a future and receive interest from it than bailing out banks for free.
Matt 1:53PM (6/23/2009)
I was making light of the fact that all of the blind cheerleaders that follow Ford CANNOT say that Ford is the only automaker that hasn't taken Government money.
Randy 1:55PM (6/23/2009)
It's a Government planned subsidization in the name of advancing technology for better fuel economy and saving the world which is being forced by the US Government thus funded by the Government.
In other words. The US Government said "You have to do this" and "So it won't F up everything else you have going on, we'll provide a low interest loan so that you can make cars VERY efficient so we can stop depending on foreign oil."
So in short. Because the US relies on GAS / OIL way to much and is being held over a barrel, the remedy is to fast track the RnD. Strangely, F and other companies will still be responsible for the money. Even though it's "required" by the Gov!
Go figure...
Keep in mind, Ford already has Hybrids, E85 and actually leads the entire industry in alt fuel RnD. So it's nothing new!
Personally I think your comment was a little, no actually VERY childish. Learn the facts before you try to put a spin on reality.
Regards....
jake 1:57PM (6/23/2009)
@Sammy
The only condition was your retooled manufacturing facility must be in the US (Tennessee for Nissan) and it must be for a advanced technology fuel efficient vehicle. You also must demonstrate you have a viable business plan.
It would be impractical to limit the loans to the big three and a couple of smaller domestic companies, since two of the big three are out of the count because of the bankruptcies, and there's only a limited number of viable smaller companies.
Judy Zik 2:49PM (6/23/2009)
Please name one large automaker that hasn't taken advantage of some for of government program? I'll give you a hint there isn't one. There is a huge difference between taking advantage of a government program and asking for a bailout or filing for bankruptcy. You might want to pay attention next year when you hit High School Matt and they start offering you the chance to take courses on Business and Economics.
What I don't get is the money for Nissan? They are developing their electric vehicle IN JAPAN. They will build it first IN JAPAN. They hope to eventually build them someday in the US. This qualifies for $1.6 Billion? Meanwhile Tesla is actually building electric vehicles right now that it developed in the states and it might get $465 Million. Bizzare.
While you folks (and your Chinese bankers) are feeling generous I am willing to hire the kid next door to develop an electric Ski-doo. If we manage to get the bugs ironed out we will set up a plant in Florida next winter (somewhere close to the beach). Cheques in American or Canadian funds are equally acceptable.
Farmboy 3:05PM (6/23/2009)
This is a reward for furthering their already stunning technology. This is different than a bailout by far.
amfan12 3:55PM (6/23/2009)
As far as I know, Chrysler are the ones who have been at the forefront of alternative fuels/power. Look at their turbine car from the 1960s that could burn well just about anything that can be burned. They also proposed electric cars around that time as well. Then you have Chryslers all electric minivans in the EARLY 90s, you also have the GEM cars, and now you have their line up of plug in hybrids and EV prototypes. Up until Daimler bought Chrysler, Chrysler had some of the most advanced technology around.
Yaroukh 4:37PM (6/23/2009)
Ofcourse Ford hasn't taken any bail-out, regardles of what the biggest dummie on AB says. :)
Randy 5:06PM (6/23/2009)
@amfan12
If you want to count firsts... The first flex fuel / ethanol car ever was the Model T. The next on-the-road car (as far I've ever read) is the 1996 Ford Taurus which had a little green leaf on the side of it. Along with other fleet cars by Ford. Following that everyone started something.
As far as Chrysler being on the fore-front, their electric car is a Lotus with a battery pack in it. Hardly innovation! It was off the shelf / concept and not something they really had in their works. It was a BS effort at getting Gov money in my opinion.
It is also widely known Ford is the top RnD company of any and all companies on earth. It was huge news earlier in the year.
Check it out bud... It's all true... And I'm open to new info if I'm not giving correct info. I'd rather be enlightened than ignorant.
Matt 5:16PM (6/23/2009)
"Of course Ford hasn't taken any bail-out, regardles of what the biggest dummie on AB says. :)"
I NEVER said Ford took a bailout...
I said the took money from the Government.
amfan12 5:39PM (6/23/2009)
Yeah because after all, I can just go down to my local electronics store, purchase an 80HP turbocharged 4 cylinder mounted to a HV DC generator, a giant pack of lithium-polymer batteries, and 270HP brushless DC motors, and make it all work together with a computer I bought from Dell! Look beyond the Lotus EV. Look at their plug in hybrids - look at their prototype electric minivans for USPS.
Also, there were around 20-30 or so test vehicles of the multi-fuel Chrysler Turbine, so it was technically on the road. Lack of consumer interest prevented them from going into production.
Willie 11:52PM (6/23/2009)
@ Matt's second comment
""Of course Ford hasn't taken any bail-out, regardles of what the biggest dummie on AB says. :)"
I NEVER said Ford took a bailout...
I said the took money from the Government."
I like how you answered to the comment of the person calling you the biggest dummy on AB (which you are...hehe). Matt, just go ahead and get behind the wheels of a Ford. ***Brainwashed Voice***The others want you to see the light...come with us now, our leader is calling us.
Seriously though, Ford Rocks!
Jeff Johnson 1:48PM (6/23/2009)
so at what point do we realize "hey we are 10 trillion on debt, let's stop spending money we don't have"
you know when you are terrible with money, they take your credit cards and check book away, why hasn't anyone done that with Uncle Sam?
Reply
cdwrx 4:06PM (6/23/2009)
When you are low on money, you cut costs such as protecting countries you don't care for just because they have the resource that runs your economy. The sooner your economy is less dependent upon those resources, the sooner you can reduce your protection expenses and being that it is a loan, the money will come back.
John 2:01PM (6/23/2009)
If electric and hybrid cars are such a great emerging market with excellent profit potential, why can't these companies get loans from private sources (i.e banks and funds not under the thumb of TARP)? Seems to me someone would want to throw money at a project with potential for great returns in this market.
Reply
Erik 1:49PM (6/23/2009)
"And since the ATVM program favors re-tooling of older existing plants" That's great to hear. Makes no sense to build new plants with so many existing ones vacant.
Reply
TC 2:09PM (6/23/2009)
@Jeff Johnson
How is this being terrible with money?
Joe 3:11PM (6/23/2009)
TC...he was talking about the US Government being completely irresponsible with spending under the Obama administration.